Toll profits highlight benefits of offshoring

Toll Holdings has reported an 18% increase in reported profit and a 28% increase in revenue (to $4.2 billion) for the six months ended 31 December 2010 thanks to its offshoring activities.

“The redevelopment of the Toll Offshore Petroleum Services base (TOPS) in Singapore continued well in this period with good progress being made in signing up tenants. A new wharf facility will be completed on site shortly opening up another revenue stream for the business,” Paul Little AO, Toll Group Managing Director said.

“Recent acquisitions include: WT Sea Air and Genesis in the UK, SAT in the UAE and McLaughlin Freightlines in Australia. All these businesses are expected to add to the group’s existing performance in the year ahead,” Little said.

“Importantly, we have been able to fund these acquisitions internally while retaining adequate scope for further investments as they arise,” he said.

“Toll Global Resources has been an excellent performer with revenue rising 7 per cent to $371 million and first half earnings topping $50 million for the first time. The strength of Toll’s presence in the resources sector has proven to be a real advantage for the company through the global financial crisis.

“When we look at Footwork Express, management continues to believe that the Japanese market is ripe for a strong and efficient road express provider and remains excited about the business’ potential in the medium to long term. Our immediate focus is on staff training, operational efficiency and new business practices,” Little said.

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